January 2018

A Special issue on the Staff Report to the Secretary on Electricity Markets and Reliability

In August 2017, U.S. Secretary of Energy Rick Perry received the 'Staff Report to the Secretary on Electricity Markets and Reliability.' The controversy around the aim and scope of the report has sparked heated discussions, but the way smart grid paradigms and applications are affected or may affect the report’s conclusions have received little attention, until now. The following articles from world-renowned industry experts and academic scholars provide some much-needed analysis on various aspects of the report.

In August 2017, the DOE released their staff report on Electricity Markets and Reliability. This report was written at the request of Secretary Perry to look at issues in the energy markets and how policy was driving those markets.

Power systems worldwide are undergoing unprecedented changes and experiencing significant challenges, particularly in terms of reliability, while attempting to transition towards a low-carbon energy system. The “Staff Report” has outlined several of these challenges and potential solutions for the case of the US power system, especially in terms of potential reliability issues in operating regions with large-scale penetration of Renewable Energy Sources (RES). Similar issues are experienced in the National Electricity Market (NEM) in Australia.

The dominating trend of variable renewable energy (VRE) sources continues to underpin the early retirement of baseload power generating sources such as coal, nuclear, and natural gas steam generators. However, the need to maintain system reliability under dynamic environmental and market conditions requires advanced levels of coordination and collaboration amongst stakeholders. Although maintaining a diverse generation portfolio is necessary for grid reliable operations, identifying the best VRE resources from both economic and engineering perspectives is pivotal in ensuring minimum overall system cost, reliability improvement, and increased resource diversity. The engineering screening entails capacity and reliability analysis coupled with highlights on timing, severity and location of constraints on the grid. With respect to the technical analysis, the economic screening determines the baseline avoided cost and cost-effectiveness of the VRE sources. Further, uncertainty analysis can provide the required refinement for the entire analysis to give a robust recommendation of the VRE choice.

IEEE Smart Grid Newsletter Compendium

The IEEE Smart Grid Newsletter Compendium "Smart Grid: The Next Decade" is the first of its kind promotional compilation featuring 32 "best of the best" insightful articles from recent issues of the IEEE Smart Grid Newsletter and will be the go-to resource for industry professionals for years to come. Click here to read "Smart Grid: The Next Decade"